The Wall Street Journal reported, ICYMI, on a BNP Paribas Asset Management assessment saying the European Central Bank is likely to cut interest rates in the spring, before the Federal Reserve does.


  • Eurozone economy is weaker than that of the U.S.
  • “It would make more sense that the ECB cuts first”
  • initial ECB rate cut in March or April is “conceivable.”
  • U.S. growth is still strong, the Fed can afford to wait for more signs of a slowdown
  • “Inflation rates are pretty similar in the eurozone and the U.S., but there was probably a recession in the eurozone in the fourth quarter of 2023, notably in Germany,”

The Journal is gated, but if you can access it here is the link.

Powell Ueda Lagarde
Powell Ueda Lagarde